For context, I do have a decent grasp on the real estate market and financing as I have been a mortgage loan officer for 4 years now.

What might be some good ideas or ways to explore making a situation like this possible ? 

At least you're clearer about the situation compared to few days ago.

I am seeing a lot of incentives from builders Ahh the dreaded question for a loan officer!

Alternative income options are available but will reduce the maximum loan to value. 

@Ade Akingbade so, you jumped in without looking and you're now in over your head.You bought someone else's problem without a clear plan to turn it around.Highly recommend dumping this property and taking whatever loss you have to.Otherwise, you will just lose more money trying to fix this situation when you have no idea what you are doing.Bring your funds to Detroit - which is growing!

Realtor friend suggested a bridge loan or Heloc but neither seem viable from my research.I would think there would be a way to leverage the equity in my current home in this situation?

Considering my inexperience in the market driving a lack of capital prepared, I've been looking at the requirements of an FHA loan.

I have been house hacking a duplex I purchased for 350k for 2 years putting 3.5% down using FHA loan.

Not sure what the correlation is between the septic delay and the bedroom situation, but this certainly is not a pleasant surprise.